Contractors and workers around the house need to be properly licensed and insured. I'd rather pay more for a pro (sometimes more than a little more) for someone who's properly licensed and insured rather than a "fly-by-night" person who will do the job for a much lower price and is cash-only.

I recently needed a tree taken down - licensed and insured company was $1675 and had their agent send me a certificate of insurance. Fly-by-night cash-only guy recommended by a relative (who I later learned had a drug addition problem*) had no such credentials and couldn't produce an insurance certificate was $975 cash.

I can imagine the tree falling onto my house and the dude just disappearing, or the dude falling out of the tree and suing me since he wasn't insured...no way!

*Come to find out that both this relative and the uninsured tree guy have drug addition problems.

To be clear - frugal doesn't mean cheap - it means not wasting anything. Sometimes spending less for an item is NOT being frugal because it won't hold up and you end up being wasteful.
I believe I am frugal with nearly everything I buy and do. In your kohls example - I wouldn't consider that a frugal decision as the clothes may quickly wear out and I will need new ones. I find buying dress shirts at Jos.A.Bank a more frugal decision because they last far far longer (and Traveler shirts don't need ironing so save me from going to the dry cleaner or losing precious time ironing myself). I once bought some dress shirts at Kohl's that fell apart after a few months - not frugal in my opinion. Similarly - paying less for a contractor is NOT frugal in many cases because the contractor may do a poor job and it will cost you more in the long run. I would also argue this point for some food items - paying more for better quality food is less wasteful because you are taking better care of yourself in doing so - at least this is the argument my wife uses for shopping at Whole Foods

I live in a house that's small by US standards. I don't have cable TV. I take the bus to work. When I drive, I drive an 11 year old subcompact. I bring lunch from home.

My house may be small, but it is located in an expensive urban neighborhood, close to work. My housing cost is high relative to the amount of space I have, but my commute cost, both in time and money, is low, and my resulting quality of life is high.

I eat good food without worrying about how much it costs, and take expensive vacations to exotic places. I drink fancy coffee whenever it pleases me.

I live in a very small house (725 square feet) and enjoy the benefits of low property taxes, low utilities, low insurance, etc. But every day I have a cafe mocha from Starbucks for $4.59. Every day. I've tried McDonald's, Dunkin' Donuts, etc. I've accepted the fact that this is my one daily splurge.

I'm frugal about everything, to a point which would be viewed pretty extreme even to those on this board. But, as others, have noted, when it comes to fixing things (especially the house, but also our car), I am not skrimping to save a few bucks. I am willing to pay a little more for someone I trust and who will do it right the first time.

50ismygoal wrote:I live in a very small house (725 square feet) and enjoy the benefits of low property taxes, low utilities, low insurance, etc. But every day I have a cafe mocha from Starbucks for $4.59. Every day. I've tried McDonald's, Dunkin' Donuts, etc. I've accepted the fact that this is my one daily splurge.

I have come to the conclusion that everybody is frugal and a big spender. For a lot time I always though people were one or the other but as I got older I changed my mind.

I have some friends that live is a a cheap house but love to eat out. I am guessing they eat out enough to cover the house payment. To each his own. They love cheap houses and cars. That frees up a budget to do a lot of little things in life that other can't.

Disclaimer: You might lose money doing anything I say. Although that was not my intent. |
Favorite song: Sometimes He Whispers Jay Parrack

Never buy at full retail price. Still frugal on cars. Driving Hondas even though I would love a Tesla and can afford one. Only thing that comes to mind that I'm not that frugal on anymore is travel for family vacations though that said would never fly business class and would rather drive than fly if possible.

'It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so!' Mark Twain

We are not good consumers, I apologize for that, but we are not going to try harder.

We have neither the taste nor the desire for the finer things in life. Wine is not sublime to us, it just tastes like wine. Steak does not taste better than premium burger, just differently. We like fajitas so we buy steak sometimes when bell peppers are in season. We like shrimp, but at Mary's taco stand at the water's edge on the Sea of Cortez, looking at the shrimp boats. We like eating at the fruit markets in Hawaii. There is some expense to going there. Do they serve good shrimp tacos at the seaside restaurants in Del Mar? We will not ever go there to find out.

Fieldsy1024 wrote:I kind of learned that lesson now. Also, try not to haggle repair work on your house like buying a car. They will most likely cut corners.

In my experience... the best way to get a good deal on auto work is to go to someone who is vested in his own business, who is honest, and who is also knowledgeable/experienced/physically able to do the job... and is able to communicate properly how he knows his diagnosis and solution for your problem is on target. (I did most of my own auto work including major repairs for decades until it became evident that there were better ways to spend my time.)

If the proprietor has those qualities... there is no reason and no benefit to anyone to haggle. He deserves to make a reasonable living. Giving business and referrals to someone like that benefits everyone.

After all the repairs on used cars, I don't think I will ever get a used one again. I will own my cars for 9-10 years though. After that, even if not driven a lot, things need to be replaced here and there.

6miths wrote:Never buy at full retail price. Still frugal on cars. Driving Hondas even though I would love a Tesla and can afford one. Only thing that comes to mind that I'm not that frugal on anymore is travel for family vacations though that said would never fly business class and would rather drive than fly if possible.

Crimsontide wrote:We are fairly frugal in all our purchases, except maybe tires. We do not cheap out on tires, we do look for a discount at Discount but we don't buy low end when it comes to our safety...

I cringe when people go for the cheapest tires. With tires you truly get what you pay for. What you are paying for can save you from an accident.

I love the concept I learned here of "Be prudently frugal and
selectively extravagant." I have a lot of nice clothes but I hate
paying retail. I get unbelievable bargains on buying winter
clothes in February and summer clothes in July-August when
they are trying to clear out for the next season.

On the splurge side I buy organic milk, Ghirardelli chocolate(on sale
if possible), nice dining on occasion but cook healthy at home most
of the time, and one of my ultimate joys is a Swedish massage every
once in a while.

A few things I plan to do only once in a lifetime---one I have already
done--dinner at Le Bernardin in Manhattan. Another I hope to do is
go to the Kentucky Derby and get the VIP package(hey remember this
is only once !). There are others but you get the idea.

On the other hand, my wife and I do tend to purchase new cars. But I buy relatively inexpensive cars without frills, pay cash if I can't get a 0% auto loan, and drive them until they require too much maintenance for my taste. That's usually 8-12 years. Then I buy another new one.

We also have a second home on the ocean that we use for weekends, vacations, and will most likely retire to.

And we tend to be generous gift-givers, particularly with our children and grandchildren.

Frugal with cars (only very used vehicles) and clothes (I won't buy a dress that's more than ~$30) and groceries (Great Value brand whenever possible). Not frugal with electronics - I go with a really nice TV, computer, and gaming systems.

rec7 wrote:
I have come to the conclusion that everybody is frugal and a big spender. For a lot time I always though people were one or the other but as I got older I changed my mind.

I have some friends that live is a a cheap house but love to eat out. I am guessing they eat out enough to cover the house payment. To each his own. They love cheap houses and cars. That frees up a budget to do a lot of little things in life that other can't.

Long ago a friend of mine pointed out that 'you can have anything you want, you just can't EVERYTHING you want. Case in point. If you want something (early retirement, FI etc.) you have to be willing to give up other things. Some people would rather have the cars/houses and give up the money. Weird, I know.

"The cure for boredom is curiosity. There is no cure for curiosity." --Dorothy Parker

I'm frugal with cars and our house. I drive an old truck that's paid off and the house we own is small by the "joneses" standard. Being this way allows us to fund retirement, spend most weekends in the summer on our boat, and travel occasionally. It's a trade off we consider worth it. We create more memories on our boat and traveling than by driving a new car with a larger (unneeded) house.

As others have mentioned I also have no problem spending money for home remodel/repairs, but I buy all my clothes at thrift stores and pack lunch every day. I also buy new cars, but keep them 15+ years. Shoes and mattresses, same deal. My rule of thumb is when something needs to last multiple years I don't mind spending more money upfront for higher quality.

Not sure if it is exactly "frugal," but I tend to buy almost everything based on bang-for-the-buck and durability. Clothing, shoes, etc are inexpensive but durable. I have no desire or need to dress "nicely." We buy new cars with features we like, so not cheap but not top-of-the-line either, and we keep them until maintenance costs becomes problematic (usually about 10 years.)

We eat out often and our grocery bill tends to be high. I drink higher-priced beers and moderately-priced wines--I drank my share of the cheap stuff in my earlier years and refuse to do so at this point in my life. I have been in the same house for >25 years, it is paid for, and we see no reason to move. The size of the yard may change my mind down the road, but not yet.

We have more electronics than we need, but all is "value-priced." Audio and video equipment is probably a bit of a splurge, but it is important to both of us and we appreciate the added quality.

Retirement is the "gratification" component of all my prior years of "delay of gratification"

samsoes wrote:Contractors and workers around the house need to be properly licensed and insured. I'd rather pay more for a pro (sometimes more than a little more) for someone who's properly licensed and insured rather than a "fly-by-night" person who will do the job for a much lower price and is cash-only.

I recently needed a tree taken down - licensed and insured company was $1675 and had their agent send me a certificate of insurance. Fly-by-night cash-only guy recommended by a relative (who I later learned had a drug addition problem*) had no such credentials and couldn't produce an insurance certificate was $975 cash.

I can imagine the tree falling onto my house and the dude just disappearing, or the dude falling out of the tree and suing me since he wasn't insured...no way!

*Come to find out that both this relative and the uninsured tree guy have drug addition problems.

As a reputable, fully licensed and insured contractor who takes pride in my work I applaud your post.

Last edited by WJW on Mon Mar 14, 2016 3:04 pm, edited 1 time in total.

I try to spend money on things that make me happy, and avoid spending money on things that do not. Cars do not make me happy, dry aged steak under my super hot broiler does. Having dinner with my wife at a nice restaurant without the kids makes me happy, trying to travel with three small children to faraway places does not. Shooting hoops with my kids on the court we put in our backyard makes me happy, taking multiple children to expensive professional sporting events where I am primarily concerned about not losing sight of them does not. Having a few nice suits makes me happy, have 10 nice suits does not. My wife going to a movie when she has a free day makes me happy; meeting her for lunch on those days also does. Spending money on a personal trainer at my inexpensive but very friendly gym makes me VERY happy, joining the most expensive gym in town for their soft towels and scene does not.

I would just emphasize here that there is no implicit value in being frugal. You get one life, make it count. The question is - where do you choose to spend your money, and where do you not. Its a zero sum game - what are your values/priorities? Above are some of mine.

For money we invest in quality groceries mostly. And the few things we buy, we buy expensive on sale if it lasts longer. Vitamix and a loaded SSD laptop for $1000 total were the last things that come to mind. Before that boots, coats and a pair of shoes that will definitely last ten years each. Can't afford to buy cheap stuff if there's a more durable alternative.

Where we really spend is time. We took a two month family leave. One of us worked for fun for three years. We don't own a house and the time that's lost with it. Today was work, a mentor walk on the city waterfront, basketball and homemade dinner with friends. Yes we could earn more but time is our big splurge. I did not go for the brass ring. We may end up only working 20 years combined.

I'm learning to be unfrugal...I might run out of time before I run out of money....but my lifestyle is relatively simple, so most of it comes naturally (frugality)....so learning to spend more is kind of fun, actually - like reaping a long awaited harvest.

How many retired people does it take to screw in a lightbulb? Only one, but he takes all day.

I'm frugal with stuff that is not that important to have a nicest versions of. I won't buy an expensive t-shirt, top of the line computer/tv/stereo/phone, shoes, or accessories. I will spend what is enough to get something that is decent in quality but not top of the line. Food and travel is difficult to be frugal with considering times of flights and locations of hotels. Eating well is part of living well and that is something important enough to spend on.

I drive an old car, pack my lunch everyday, and generally spend very little on myself. When I do spend on things such as electronics, I generally do a lot of research and wait until I can find a quality product, without unnecessary extras, at a good price. I also try to take advantage of credit card and bank offers, and try to make money buying and selling golf clubs when opportunities arise.

What I will never be frugal with anytime soon is cable TV. The trend is to cut the chord but with my obsession with sports, I want the experience to be as easy as possible. Spending the little extra on cable TV is probably the best value for the money that I can think of.

I have bought Japanese cars for 40 years, usually Toyota Camrys without a lot of extras. I drive them until they have 150K+ miles. I can afford more expensive cars with lots of gadgets but see no value in doing that. We use Consumer Report and other sources to research major purchases like appliances, TVs, computers, etc. We generally buy products that are highly rated but not the most expensive and avoid more frivolous features. I generally agree with Consumer Report recommendations on what features make sense to buy on products.

When traveling, we prefer Hampton Inns. They are a little more expensive than most of their competition, but IMO provide a good combination of value (including safety) and price. I do not buy a lot of clothing any more, but when I do, I buy better quality clothing. It costs more, but lasts longer and looks a lot better. One of my indulgences is Starbucks coffer. I usually brew my own at home but always buy Starbucks when traveling.

I resisted Apple products for years due to higher price, but now own an iPhone, wife has an iPad and a MAC Pro. I still have trouble resolving those purchases in my mind, but my wife is happy and the iPhone has been better for me than Samsung Galaxy.

Since DH had a heart attack 17 (!) years ago, we have not skimped on healthy groceries. We eat lots of fish and seafood, even if it's $12-$20/lb. We eat veggies and fruits we love even if they are expensive and out of season. (Be quiet locavore trolls!) In the summer we shop at local farm stands. We buy top-quality olive oil, etc. More costly than the hamburger/carb/pasta diet of the past, but more healthy and we do not feel deprived.

If something is important - by necessity or desire - I invest in quality that will endure and perform. For me, that means buying
used (but newer) Hondas, top-reviewed appliances from reliable name brands, and eating out at decent restaurants.

I don't buy much that isn't needed - my hobbies largely involve one-time or infrequent purchases - and I tend to enjoy things more when I get more use out of them. There is one exception to my budget management: books. I have a rather strong affinity for them, and I buy them when I please. I don't consciously collect rare copies (although I've "stolen" a few over the years at used book sales), so overspending isn't an issue.

My wife, however, will tell you that my spending on the books themselves isn't the issue, it's the extra room we're going to need hold them. Psh.

I'm pretty frugal in general. No cable, used cell, make my coffee at home, etc. However when I wanted a new Subaru Forester, (not that I needed it as my 7 year old car was in great shape) I bought it...cash. No regrets.

If I go out to eat, I go for the lunchtime meal most of the time instead of the evening meal because it's cheaper. I order water to drink. I buy most of my clothes at thrift stores except for shoes and underwear. I don't go on vacations. I have two vehicles, one is 10 years old and one is 15 years old. I have a dumb phone that cost $100 per year, actually less because I don't use it all. I live in a paid for, nice modern home that has 2800 square feet living area downstairs and about the same upstairs, but we don't use the upstairs. I have cable TV. I called the cable company a couple of weeks ago and asked if they had anything cheaper than the $55 per month plan I had. They changed it to a $27 per month plan, but I still get the same channels I was getting before I changed it. Go figure. I have everything I need or want. If I wanted something, I could buy it, but I don't want much. If I spent $260k per year, which I could according to the 4% safe withdrawal rule, I wouldn't be any happier than I am right now. "The richest person is not the one who has the most, but the one who needs the least."

HongKonger wrote:I'm 3 years into ERE so I'm super frugal with everything ...but not when it comes to cookware, kitchen knives, linens & towels. Oh, I'm a sucker for designer lighting too - but that holds it's value. These things make my everyday feel luxurious.

I recommend a wicked edge sharpening system to keep those knives in top shape... That's one thing that I was "frugal" about. Buying high end (but not elite showpiece) knives and spending $500 on a sharpening system that will keep them cutting for many years. All knives need sharpening eventually. Until I got the sharpener my knives were dull and I couldn't tell a difference after using the honing steel. Now that I can fix any mistakes I make I use the steel every several days and it really does make a big difference when starting with a reasonably sharp knife. I can actually feel it work when sliding the blade down the hone.

I'm also about to drop 6k on a top of the line Miele dual fuel range. The rest of the kitchen refresh will only be about 6k. I buy my clothes at thrift stores (currently wearing banana republic pants that had the tags on them for $8). Food comes from a farmers market, CSA, or higher end grocery store whenever possible. Pork and Chicken must be pastured.

I'm "kinda" frugal when it comes to cars. I buy new (Toyota or Honda) but I plan on keeping the vehicles for a long time so I reckon amortized over length of ownership, the purchase cost isn't that high. It helps that I hate the entire car buying process and would prefer not dealing with car dealers unless I absolutely have to. I brown bag lunches. Not much into clothes and shoes either although I tend to buy quality items that will last for years.

I splurge on tech toys and computer parts (but I always do my research and often wait for sales). I get plenty of enjoyment and mileage from my tech toys so I consider it money well spent.

I don't travel often but now when I do, it's also a bit of a splurge (e.g. on-site Disney World value or moderate hotels instead of off-site, front of line theme park passes, private shuttle to airport instead of shared, etc). I've cheaped out on travel before and honestly, instead of feeling like a vacation, I end up stressed and feeling like I need a vacation from my vacation and that I would've been happier using funds spent on the vacation to upgrade my iPad.

Hmm, can you consider health insurance a splurge? I pay higher premiums for Kaiser at the same metal tier but I'm very happy with the care provided and the closed network structure means I don't have to deal with in-network/out-of-network billing issues.